The Quick Ratio and the Number of Days' Sales in Receivables

question 164

Multiple Choice

The quick ratio and the number of days' sales in receivables measure:

• A) a company's ability to pay its long-term debts.
• B) a company's profitability.
• C) a company's liquidity.
• D) all of the above

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Definitions:

Amides

Organic compounds containing a carbonyl group linked to a nitrogen atom from an amine, fundamental in the structure of proteins.

Organic Product

A chemical compound of carbon, often produced or derived from living organisms, excluding compounds like carbonates, carbides, and cyanides.

Reaction Sequence

A series of chemical reactions where the product of one reaction becomes the reactant in the next.

Organic Product

A compound or substance that has been prepared or is obtainable by chemical reactions involving organic precursors.